1 Statement of significant accounting policies (continued) iii. Equity-settled compensation The fair value of options granted is recognised as an employee expense with a corresponding increase in equity. The fair value is measured at grant date and spread over the period during which the employees become unconditionally entitled to the options. The fair value of the options granted is measured using the Black-Scholes pricing model, taking into account the terms and conditions upon which the options were granted. The amount recognised is adjusted to reflect the actual number of share options that vest, except where forfeiture is only due to market conditions not being met. n. Provisions Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions are measured using the best estimate of amounts required to settle the obligation at the end of the reporting period. o. Revenue and other income i. Revenue from contracts with customers Revenue from contracts with customers is recognised when a customer obtains control of the promised asset and the Group satisfies its performance obligations under the contract. Revenue is allocated to each performance obligation. The Group considers the terms of the contract in determining the transaction price. The transaction price is based upon the amount the entity expects to be entitled to in exchange for the transferring of promised good. ii. Finance Income Interest income is recognised as the interest accrues (using the effective interest method) to the net carrying amount of the financial asset. All revenue is stated net of the amount of GST (Note 1e.ii Goods and Services Tax (GST)). p. Segment reporting An operating segment is a component of the Group that engages in business activities fromwhich it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. All operating segments’ results are regularly reviewed by the Group’s directors to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. Notes to the Consolidated Financial Statements q. Critical Accounting Estimates and Judgements The directors evaluate estimates and judgements incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Group. Management discusses with the Board the development, selection and disclosure of the Group’s critical accounting policies and estimates and the application of these policies and estimates. There are presently no estimates and judgements that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. i. K ey judgements and estimates – Share-based payments The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by an external valuation using a Black-Scholes option-pricing model. ii. K ey judgements and estimates – Acquisition of Sams Creek Gold Limited Identifiable assets acquired and liabilities assumed as part of the acquisition of the tenements held by Sams Creek Gold Ltd have been assessed as comprising an asset acquisition and have been measured initially at their fair values at acquisition date. Further details on the transaction can be found at Note 23. r. Exploration and Development Expenditure Costs incurred with respect to the acquisition of rights to explore for each identifiable area of interest are capitalised in the statement of financial position. Capitalised costs are only carried forward to the extent that they are expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves. Capitalised costs in relation to an abandoned area are written off in full against profit in the period in which the decision to abandon the area is made. When production commences, the capitalised costs for the relevant area of interest are amortised over the life of the area according to the rate of depletion of the economically recoverable reserves. A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest. for the year ended 31 December 2022 Siren Gold Limited 58
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